Class Action Okayed Against Ohio Savings

The Ohio Supreme Court has ruled that a class-action lawsuit against Cleveland-based Ohio Savings Bank can proceed.The decision reverses a lower appellate court decision that narrowed the size of the class. The suit, filed by Frances Hamilton and Barbara A. and George Seidel, alleges that Ohio Savings Bank charged "hidden interest" to borrowers on loans originated from 1970 through at least late 1997. Robert Sweeney, one of the attorneys who argued the case for the plaintiffs before the Ohio Supreme Court, estimated that the class includes upwards of 50,000 loans. He further calculated that a homeowner who took out a $40,000, 30-year mortgage with Ohio Savings has paid over $5,000 in excess interest to the lender. An attorney for Ohio Savings said the thrift will "vigorously defend its position." The case now returns to the Cuyahoga County Pleas Court.